(Bloomberg) -- Mexican discount retailer BBB Foods Inc. jumped on Friday, by the most since its initial public offering in February, after posting solid growth in its first set of results.

Shares of the operator of Tiendas 3B stores rose 12% to $23.11 after the company reported same-store sales growth in the fourth quarter of nearly 15%. The stock is up over 32% since its debut. 

The company opened a record 396 stores during 2023, with nearly 40% inaugurated in the fourth quarter, to reach a total nearly 2,300 locations, CEO and founder Anthony Hatoum said in a call with analysts. BBB Foods is planning to open as many as 420 more stores this year while same-store sales are projected to grow in the mid-teens as word spreads about its growing private-label goods offerings, he said.

“We have more private labels, we have better quality private labels, and we’re giving our customers more value for money,” Hatoum said, adding that he expects the company to expand to 12,000 stores. 

Read More: Mexico Retailer BBB Jumps Up to 20% as IPO Upswing Continues

Following the business model of German discount chain Aldi, 3B stocks a limited variety of products — ranging from snacks to cleaning products — at competitive costs. BBB Foods, which raised $677 million in its listing, is the first consumer-oriented Mexican company to carry out an IPO since tequila maker Becle in 2016. It’s giving investors a new option to play Mexico’s domestic market, which has been fueling stronger-than-expected growth in the country. 

“The stock looks inexpensive considering its high growth profile and margin expansion potential,” Scotiabank analyst Hector Maya, who has a buy rating on the company, wrote in a note. 

©2024 Bloomberg L.P.